MUTUAL FUNDS
In this SHORT article, we are going to know about
* what are mutual funds???
* How it works???
"Remember patience with Hard work is the ultimate weapon"
Let us start...
Mutual Funds can seem complicated or frustrating. But in
this article, I am going to discuss it in layman(common) terms. Essentially, the money
pooled in by a large number of people (or investors) is what contributes to a Mutual
Fund. This fund is managed by Fund Manager/Money Manager(mainly CFA's).
Working!
This fund is being made by the trustees and hence the fund manager is also appointed by them.
This fund collects money from investors and invests such money in equity, bonds, and other securities.
Every investor then owns some units, which represents a portion of the holdings of the fund.
Shares!
Mutual funds!
Investing in a share of a mutual fund is different from
investing in shares of stock. Unlike stock, mutual fund shares do not give their
holders any voting rights.
Income!
The income/gains generated from this collective investment
is distributed proportionately amongst the investors after deducting certain
expenses, by calculating a scheme’s “Net Asset Value or NAV.
THANKS FOR READING
REGARDS
HRIDYANSH DAVE
Upcoming articles
-types of mutual funds
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